purchasing a home

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Mosquito Fire Forces Evacuations In Placer County

Firefighters saw trees on a hillside in order to open the path for bulldozers during the Mosquito Fire near Foresthill, California, US, on Wednesday, Sept. 7, 2022.

David Odisho/Photographer: David Odisho/Bloom

Californians looking to buy a house face some of the country’s most expensive real estate prices and wildfires that threaten scores of housing tracts. Now there’s another obstacle: finding an insurer willing to cover their dream home.

State Farm General Insurance Co. said it’s no longer accepting new applications for property and casualty coverage in California last week, a year after Allstate Corp. also paused new policies, worsening what FAIR Plan, a state-mandated insurance pool, called a “looming insurance unavailability crisis.” 

“We have a lot of people going naked, which means they have no insurance,” said Bill Dodd, a Democrat state senator representing fire-scarred Napa County and other parts of Northern California. “What my constituents want is insurance.”

The FAIR Plan, which offers minimal coverage and high rates is meant to be a provider of last resort, but enrollments have surged 70% since 2019 to 272,846 homes in 2022. 

It’s a blow for the nation’s most populous state, which is already struggling with an exodus of residents, many of whom are escaping the high cost of living.

The Golden State is grappling with a roughly 1 million-unit housing shortfall, in part fueled by rising costs and zoning restrictions that have choked off new construction projects. On top of that, a series of catastrophic wildfires in recent years have increased calls from insurers to weaken the state’s consumer-friendly policies that have held down rates for decades. 

Rate Increase

The average homeowners’ policy is $1,300 in California compared to over $2,000 in other states with wildfire risk and $4,000 in hurricane-prone Florida, according to Insurance Information Institute. 

But new home buyers could be forced to pay more, regardless of their home’s proximity to wildfire dangers. Before State Farm’s announcement, the company requested a 28% rate hike on homeowners’ insurance, while Allstate has filed for a 39.6% increase. 

The insurance crunch is affecting buyers across the state already, even in areas where the wildfire risk is low. In San Francisco, realtors say they have seen deals fall through because would-be buyers couldn’t get insured.

“What we’re hearing is that now, when buyers present an offer on a property we’re not only asking them for pre-approval for a lender, we’re also asking them if they’ve spoken to their insurance agent if they’ll insure the property,” said Joske Thompson, a realtor at Compass Inc. with 40 years experience in the area. 

Home insurance is an essential step of purchasing a home. Mortgage lenders generally require proof of insurance before approving the transaction to protect their investment in the property. Without insurance. buyers would be forced to make an all-cash purchase in most cases. 

Finding a Compromise

As the state’s insurance woes accelerate, the industry is taking aim at California’s marquee consumer protection law, Proposition 103, a ballot measure voters approved in 1988. The law has saved consumers tens of billions of dollars in reduced insurance rate hikes, according to the state’s insurance regulator. 

“In the last six years, we lost 20 years’ worth of underwriting profit, and that was due to the catastrophic wildfires that we’ve faced,” said Janet Ruiz, a spokesperson with the Insurance Information Institute. 

Harvey Rosenfield, the author of Prop 103 and founder of the Consumer Watchdog advocacy group, said climate change might require insurance companies to raise rates, but he argued that companies are using wildfire impacts to gouge customers.

“Insurance companies are very opportunistic,” he said. “They have seized on climate change as an excuse to escape from the regulatory protections that voters enacted.” 

State lawmakers and industry representatives must find a compromise that would keep the insurance market viable while protecting consumers from excessive rate hikes, but that may mean Californians will have to pay more for home insurance in the future, said Dodd.

“You bite the bullet and you move forward,” said Dan Dunmoyer, president of the California Building Industry Association. Without rate increases, more insurers may leave the state, affecting everything from mortgage lending to housing supply, he said.”You have a market that is teetering on collapse.”

Source: nationalmortgagenews.com

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Refinancing a mortgage can be a great financial move for homeowners to potentially lower monthly mortgage payments, tap home equity, or build equity more quickly by shortening the term of the loan.  

Refinancing can save you money — but it can cost you money too. Before you start the refinancing process, you should know how it works, the benefits and drawbacks, and the steps you’ll need to take. 

What Is Mortgage Refinancing and Why You Might Want to Refinance?

Refinancing a home mortgage is basically replacing your existing mortgage with a new one, typically with a different principal and interest rate. 

There are many reasons why borrowers choose to refinance a mortgage, including: 

  • To take advantage of lower market interest rates
  • To shorten the term of their loan
  • To withdraw a portion of their equity
  • To lower their monthly payments with a longer repayment term
  • To convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage 
  • To remove or add another person to the mortgage

Choosing the Right Type of Mortgage Refinances 

There are three main types of mortgage refinances: rate-and-term, cash-out, and cash-in. 

  • Rate-and-term refinance: This type of refinancing allows the borrower to change the interest rate, the term of the loan, or both without advancing any new money.
  • Cash-out refinance: A cash-out refinance takes advantage of the built-up equity in the home and gives the borrower cash in exchange for a larger mortgage.
  • Cash-in refinance: A cash-in refinance allows homeowners to pay a large sum towards their principal balance during the refinance process.

4 Benefits of Refinancing a Mortgage

Your decision to refinance your home mortgage ultimately depends on your goal. Do you want to lower your monthly payments? Are you hoping to shorten the length of your loan? 

Here are some common reasons that people choose to refinance:

  1. Changing the length of your loan. By refinancing from a 30-year mortgage into a 15-year mortgage, you could pay it off in half the time. This also results in paying less interest; however, your monthly payment may go up.
  2. Switching to a different loan type. Some homeowners choose to refinance their mortgage to change their loan types. For example, refinancing from an adjustable-rate mortgage to a fixed-rate mortgage. The interest rate for an adjustable-rate mortgage can go up and down over time but the interest rate for a fixed-rate mortgage doesn’t change.
  3. Tapping into your home equity. Want to do some home improvements, pay off debt, or even take a trip? You can do a cash-out refinance to borrow more than you owe on your current mortgage.
  1. Getting a lower interest rate. Interest rates fluctuate for a variety of reasons. Refinancing could make financial sense if you can get a lower interest rate than when you originally took out your mortgage. If you can secure a lower interest rate, you could potentially save money and pay off your mortgage faster. 

Calculate how refinancing might affect your monthly payments with Total Mortgage’s Refinance Calculator and see how much you can save. 

How to Refinance a Mortgage: 4 Key Steps

Refinancing a mortgage is very similar to purchasing a home; however, it’s a little less complicated. But how exactly does refinancing your home work? Here is a simplified step-by-step guide:

  1. Understand your reasons for refinancing. Before you refinance, you need a clear goal. What do you want out of your refinance and what type of loan will help you achieve that goal?
  2. Apply for a refinance. Once you’ve selected your lender, you’re ready to complete your refinance application, lock your interest rate, and submit any necessary documents. Keep in mind that you don’t have to refinance with your current lender. Exploring other landers’ options could increase your chances of finding a better interest rate with more favorable loan terms.
  3. Appraisal and underwriting. The underwriter will review the application and documents and offer conditional and/or final approval of the loan. The lender will also order a home appraisal to verify the current home value.
  4. Close on the loan. The home closing is when you and your lender will go over the loan documents and finalize all details. You’ll need to sign documents and pay closing costs listed in the Loan Estimate and the Closing Disclosure.

The time it takes to refinance a mortgage depends on several factors, such as credit checks, appraisals, and the lender. Refinancing a mortgage can take anywhere from 15 days to 45 days or longer, with an average of 30 days to close. 

Costs of Refinancing a Mortgage 

Refinancing isn’t free — but depending on your circumstances, it can be worth it. Closing costs typically include origination fees, home appraisal, and recording. Depending on where you live and your lender, there could also be an attorney fee and title search, and insurance.

Closing costs are generally a percentage of your loan amount —about 2% to 5% — though these are just estimates and costs may vary depending on the state and county where you live as well as your lender.

Not every closing will cost you money at the closing table. You could also have a no-closing cost refinance. 

This is a refinance where instead of paying upfront, closing costs are either rolled into the new loan or the lender may raise your interest rate. While this does mean that you need to come up with less money at closing, you could end up paying more over the long run.

Explore Total Mortgage’s Refinancing Options

Unsure if you should refinance? Refinancing a mortgage could potentially lower your monthly payments with more favorable terms. Another option is to use a mortgage refinance to tap your home’s valuable equity and use the cash as you please. 

If you’re looking to refinance a mortgage, be sure to check out Total Mortgage’s list of branches across the US and find the one nearest to you. You can also apply online and get a free rate quote.

Source: totalmortgage.com

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To say that mortgage rates have been on a wild Mr. Toad’s ride in 2022 is an understatement. In less than a year, we went from 2.78% on the 30-year fixed to as high as 6.28%, then recently got as low as 5% — only to have another move higher this week to 5.30%. People thought the mortgage rate drama in 2013-2014 was a lot when rates went from 3.5% to 4.5%. However, as we all know, after 2020, things are just more intense. 

The question is, can lower mortgage rates save the housing market from its recent downtrend? To understand this, we need to look back into the past to realize how different this period is from what we had to deal with in the previous expansion when rates rose and then fell.

Higher rates and sales data

We can see that when rates rise, sales trends are traditionally lower. We saw this in 2013-2014 and 2018-2019. We know the impact in 2022, working from the highest bar in recent history.

The most significant difference now from what we saw in the previous expansion is that mortgage rates never got above 5% in the previous expansion. However, more importantly, we didn’t have the massive home-price growth in such a short time. It does make an enormous difference now that home prices grew above 40% in just 2.5 years. 

This is why I focused my readers on the years 2020-2024, because if home prices only grew by 23% over five years, we would be ok. However, that got smashed in just two years, and prices are still rising in 2022. It’s savage man, truly savage with the mortgage rate rise. Yes, rates bursting toward more than 6% is a big deal in such a short time, but the fact that we had massive home-price growth in such a short time (and in the same timeframe) is even more critical.

While I truly believe that the growth rate of pricing is now cooling down, 2022 hasn’t had the luxury of falling prices to offset higher rates. So we can’t reference this period of time with rates falling as we did the previous expansion due to the massive increase in home prices and the bigger mortgage rate move. In 2018, sales trends fell from 5.72 million to the lows of January 2019 at 4.98 million. This year we have seen sales fall from 6.5 million to 5.12 million, and they are still falling.

Housing acts better when rates are below 4%

In the past, demand improved when mortgage rates were heading toward 4% and then below. Obviously, we are nowhere close to those levels today, barely touching 5% recently to only go higher in the last 24 hours.

Again, I stress that the massive home-price growth is different this time. However, with that said, considering the sales decline trends and that we have seen better-than-average wage growth, housing demand should act much better if rates head toward 4% and below. 

I stress that higher and lower mortgage rates impact the market, but it needs time to filter their way into the economy. When I talk about the duration, this means rates have to be lower for a more extended period. People don’t throw their stuff down and buy a home in a second; purchasing a home is planned for a year. Rates would need to stay lower for longer into the next calender year to make a big difference. 

Millions and millions of people buy homes every year. They have to move as well, so a traditional seller is a buyer most of the time when it’s a primary resident owner. Sometimes when rates go higher too quickly, some sellers can’t move, this takes a sale off the data line, but if rates fall quickly, they might feel much better about the process.

The downside of rates moving up so quickly is that some sellers pull the plug until rates are better. We see some of this in the active listing data as new listings are declining. Lower rates may pull some of these listings forward as people feel more comfortable with rates down; time will tell.

From Realtor.com 

From Redfin:

Of course, a 1% move lower in rates matters, but keep in context where we are coming from and how much home-price growth we have had in just 2.5 years. This isn’t like the previous expansion where home prices were working from the housing bubble crash and affordability was much better back then.

When to know when lower rates are working?

The best data line to see this take place is purchase application data, which is very forward-looking as the fastest data line we have in housing. Let’s take a look at the data today.
Purchase application data was positive week to week by 1% and down 16% year over year. The 4-week moving average is down negative 17.75% on a year-over-year basis.


This is one data line that has surprised me to a degree. I had anticipated this data to be much weaker earlier in the year. However, I concluded that 4%-5% mortgage rates didn’t do the damage I thought they would do. But, 5%-6% did, as I was looking for 18%-22% year-over-year declines on a four-week moving average earlier in the year. So, this makes me believe that if rates can get into a range of 4.125%-4.50% with some duration; the housing data should improve on the trend it has been at when rates are headed toward 6%. Again, we aren’t there on rates yet. 

The builders would love rates to get back to these levels so they can be sure to sell some of the homes they’re finishing up on the construction side. Now assuming rates do get this low; what would the purchase application data look like? Keep it simple, the year-over-year declines will be less and less, and then when things are improving, we should see year-over-year growth in this index. 

A few things about purchase apps: the comps for this data line will be much more challenging starting in October of this year. Last year’s purchase application data made a solid run toward the end of the year, which led existing home sales to reach 6.5 million. Next year we will have much easier comps to work with, so we need to keep that in mind. However, to keep things simple, the rate of change in the purchase applications data should improve yearly.

To wrap this up, lower mortgage rates should be looked at as a stabilizer first, but for them to change the market, we will need much lower rates for a more extended period. Also, we have to consider that rates moving from 3% to 6% is historical, and if rates fall, we have to look at housing data working from an extreme rise in rates that happened quickly. However, sales levels should fall if purchase application data shows negative year-over-year prints on a double-digit basis. 

Since home prices haven’t lost this year, you can see why I used talked about this as a savagely unhealthy housing market. The total cost of housing had risen in a fashion that isn’t comparable to what we saw in the previous expansion when rates went up and down due to the massive increase in home prices. Also, we have to know that we aren’t working from a high level of inventory data as well. Traditionally, total inventory ranges between 2 to 2.5 million. We are currently at 1.26 million.

NAR total inventory data

We shall see how the economic data looks for the rest of the year and if the traditional bond and mortgage rate market works as it has since 1982, then mortgage rates will head lower over time. However, as of now, it’s not low enough to change the dynamics of the U.S. housing market.

Source: housingwire.com

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International Women’s Day celebrates the social, economic, cultural, and political achievements of women. This year the IWD theme is #BreaktheBias – focused on acknowledging the daily challenges that women still face in the workplace and society. This year, we wanted to let our employees share what IWD means to them. Below are some of the responses we received. 

Michelle Carrasco

I believe International Women’s Day is very important. Not just to honor professional women, but the single mothers, the wives, or the female college students working hard towards their degrees to make their marking on society. 

On this day, I most importantly would like to honor the women that fought for us to have the rights we have today. They were our voice then, now and for generations to come. Without them we wouldn’t be able to hold the positions we have in the workforce, have the privilege to vote and do things as simple as purchasing a home or open a credit card without the signature of a man (husband or father) to validate you as a person.

As a first-generation woman in this country with Dominican roots and being raised by a single mom, I saw the struggles and how hard she had to work to get ahead, but always teaching us that giving up is not an option and that you are in a country where if you work hard, you can achieve whatever you set your mind on. 

As the years have passed women have been given the rights to participate in many more arenas and our future is looking brighter. I hope to be an example for my daughter’s future, like my mom was to me, that if she has the drive, she can accomplish anything she wants in life.

I am honored to be a woman; I am honored to be a minority and I hope that for generations to come women feel empowered within their positions to grow.

Image: (Left) Sophia Bell, (Right) Deborah Kennedy

Brieanna Kelley

It means celebrating women and all their achievements. For me being a mom, manager, producer, home owner, volunteer but all of that as a woman. I think women bring multitasking and care to the workforce while balancing home and work. And regardless of gender we all work to improve our lives inside and out of work. 

Melissa Clifton

International Women’s Day and National Women’s month is a celebration for all the woman who have dared to dream big and dare to chase those dreams. It’s a celebration of the hard work, determination and fire that burns within us. Its for all the mothers, daughters, sisters who have fought for build businesses and raise families and be proud of all we’ve achieved.

Katie Weldon

It means celebrating women’s success – I feel like it’s as simple as that.

Image: Ladies of Leominster featuring Rocco

Carrie Buchanan 

This is a day to acknowledge and honor women around the world for the contributions we make every day!

Denise Panza

International Women’s Day should be everyday but since there’s one day which we celebrate it….I’m just so proud, honored and humbled to know some exceptional women from all walks of life. We may have different careers and paths but we share a common goal….we want to see each other succeed! We get to be cheerleaders for one another and lend a hand when we see someone in a tough place as well as rejoice with those that have made it to the other side. We as women all have a story and I’m thankful for all the women that have played such an important role in my life. My dearest family, friends and colleagues….I’m forever grateful for you! Let’s continue to be the kind of women that want to help other women achieve their goals if it’s in our means to do so or connect them to others that can. Make a chain that doesn’t break and helps one another out! Cheers to all the lovely ladies!

Eva Plantenberg

To me, International women’s day is a day to be aware of all that has been accomplished but also sacrificed to get us to where we are today.

Image: (Left) Kristen Karam, (Right) Gil Kaplan

Source: totalmortgage.com

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home buying tips

home buying tipsIf you are looking to buy a house, I have a bunch of home buying tips that will help you sort through all of your options, understand the real cost of a home (and help you save money), and make the right choice. 

Buying a house is a huge purchase.

In fact, it is usually the largest purchase a person will ever make.

The median U.S. home value is $226,800 and the median price of homes currently listed is $291,900, according to Zillow. And, there are some areas that have much higher average home prices, like four to five times more.

Purchasing a house is a huge commitment, and it’s easy to get excited and forget to think about some very important things before plunking down a huge amount of money. There are just so many factors to think about, and not everyone will have the same concerns. 

To help you through the home buying process, today’s post is going to be like a mini first time home buyer guide. I’m going to cover some of my best home buying tips, like:

  • Whether or not you should rent instead of buy
  • How to set a budget (one of the most important steps to buying a house for the first time)
  • Deciding what you want in a home
  • How to research the true cost of a house
  • Thinking about how long you’ll live in an area (recouping your costs)
  • How to avoid feeling rushed
  • Do you really need the house you’re about to buy

Whether you are a first time home buyer or if this is your second house or more, these are all things you should be thinking about.

Actually, these are the exact same things me and Wes have thought about before buying our sailboat and RV. They might not be “normal” homes, but they are what we live in. Plus, they are still very large purchases that need to be carefully thought out.

The home buying tips that I’m about to give you are to help you analyze what’s best for your situation – whether that’s a 5000 sq. ft. house, a 500 sq. ft. tiny home, an RV, a condo, etc.

I’ve said it already, but buying a house is a large purchase! And, everyone has felt that dreadful feeling that comes after making a large purchase and realizing that you have made a mistake. Perhaps you don’t realize for months or years later, but you eventually understand that you should have thought out your purchase a little bit more.

No one wants to feel this way after buying a house!

Articles related to buying a house tips:

Here are my best home buying tips.

 

Should you rent instead?

Before we started RVing, we sold our house and rented one for a little while. This raised quite a few eyebrows and led to questions about renting vs. buying from nearly everyone.

I even had several people tell me that I was making a stupid mistake.

I wasn’t surprised, though. Many people believe the myth that if you are renting a home you don’t know how to manage your money and that buying is always better, no matter what.

That couldn’t be further from the truth.

Sometimes buying can be the better decision, but there are times when renting can fit a person’s situation much better.

Buying a house can have a lot of positives, but that doesn’t mean it’s the right step for everyone.

To determine if renting is better for you, you’ll want to think about things such as:

  • How long you think you’ll live in the area.
  • Whether or not you’re ready to purchase a house, financially and/or responsibility wise.
  • Buying a home sometimes may be cheaper than renting, and the other way around.

Nearly everyone says that a house is a good investment. Many people will even go as far to say that doing anything other than owning a house would be a complete waste of money.

However, I don’t agree with that at all.

Buying a house isn’t for everyone. You shouldn’t just jump at the opportunity to buy a house, especially any ol’ house. And, you should think about all of the factors before deciding that buying a house over renting one is the best and only decision for you.

For home more renting vs. home buying tips, please read My Opinion Of The Great Renting vs Buying Debate for more information.

 

Set a budget before you look at homes.

“What’s the smartest way to buy a house?”

The smartest way to buy a house is to first think about your budget.

One of the first things you will want to do is to set a budget – you can’t go very far in the home buying process without one. It’s how you will know what you want to be pre-approved for, and a realtor will need that information to really help you shop for homes.

You will want to set yourself a budget when it comes to the home as well as all of the other expenses that go along with owning a home.

You will want to look at your overall financial situation and analyze:

  • The income you earn.
  • The stability of your job.
  • The amount of money you have saved for the down payment, other home expenses, etc.
  • Your credit history and credit score.
  • The total monthly amount you feel comfortable paying for a home. Make sure you look at all the costs involved!
  • Your total amount of debt.

When buying a house, it takes realizing all of these factors to understand what you can truly afford and be comfortable with.

However, many people justify buying a house that is over their budget, but that is a bad plan. 

See, banks often pre-approve people for a mortgage payment that is higher than what they can afford to pay. You pre-approval number is not a good gauge of what you can afford because it doesn’t factor in the total cost of the house. 

What you can afford takes that above list into consideration, not just the number a bank gives you. Because of that, it can be a very bad idea to go over the number the bank pre-approves you for. You should always stick to an amount that you can afford.

When determining what you can afford, you will want to think about ALL of the costs that come with buying a house and living in it. This means that your research should not end with the purchase price of the house – it actually goes way past that, as discussed in a later section of my home buying tips. 

Think about what you want in a home.

If you are like most people, you’ve spent years thinking about what you want in a home. 

Now is the time to make a list of those things. This is an important step when it comes to home buying for beginners.

Buying a house can lead to a crazy amount of new feelings – happiness, stress, excitement, and more. This can sometimes make every house you look at seem like the perfect one, and that’s because they all seem so new and exciting. This even happens with houses that don’t have everything you need. And, it definitely happens with ones that have more than you need.

Before you put an offer on a house, you should think about the reasons for why you want a specific house. This is one of the first steps to finding a house that’s right for you, as this can make sure you are getting exactly what you want and need, rather than just being happy with any home.

I recommend creating a wish list that includes all of the things you want in a home. Your wish list could include things like:

  • The square footage of the home
  • Size of yard
  • If you want a fenced in yard
  • How many bedrooms and bathrooms you desire
  • The age of the home
  • The quality of the schools
  • The parking situation and whether or not there is a garage
  • The size of the kitchen
  • Pool or no pool
  • Style of home
  • Whether you want to be in the country or the city
  • Your budget, and this one is extremely important!

And, you’ll also want to create a list of things that you want to stay away from, such as if you don’t want a place with a pool, a home with a lot of yard maintenance, a home that is a fixer upper, and so on.

By having this wish list on hand, you’ll know exactly what you should be looking at, and what you should avoid.

Research all of the expenses.

Like you just read, the listing price of a home is not all that you should look at.

When you find a home that you think is right for you, you need to make sure that you can afford all of the costs that come with that home. 

Just because you can pay the monthly mortgage payment doesn’t mean that you can afford everything else that goes with it. There are ongoing costs when buying a house, which is something that many homebuyers forget about. 

In fact, U.S. homeowners, on average, spend more than $9,400 per year in hidden homeownership costs, and maintenance expenses cost homeowners an average of $6,300 per year in unavoidable hidden costs, according to MarketWatch. These include things like homeowners insurance, property taxes, and utilities. So, this is one of the best home buying tips to help you stay out of a bad financial situation.

Before making a home purchase, you should think about how much the home will cost you in the long run. There are many ways to think of this, such as:

  • Property taxes. These vary widely from town to town. You may find yourself looking at two similar houses with similar price tags, but the property taxes may vary by thousands of dollars annually. That is a LOT of money. While it may seem small when compared to the actual home purchase price, remember that you have to pay property taxes annually, and a difference of just $3,600 a year is $300 a month.
  • Gas. Many homes use gas to run the hot water heater, the stove, and so on.
  • Electricity. Generally, the bigger your home, the higher your electricity bill.
  • Sewer. This isn’t super expensive, but it is generally around $30-$50 a month.
  • Trash. This isn’t super expensive either, but it does cost money.
  • Water (and possibly irrigation).  Depending on how you use water and where you live, water bills can vary widely. I know many who live in areas where the average water bill is a few hundred dollars each month.
  • Home insurance. Home insurance can be cheap in some areas but crazy expensive in others. Don’t forget to look into the cost of earthquake, flood, and hurricane insurance, and know that it can add up quickly depending on where you live.
  • Maintenance and repairs. No matter how old your home is (even brand new homes), repair and maintenance costs will eventually come into play. In fact, U.S. homeowners pay an average of $3,435 per year in annual optional costs, including house cleaning, yard care, gutter cleaning, carpet cleaning, and pressure washing. But, don’t forget about things like needing a new roof or other repairs that may come up! Those are big expenses that you will need to be able to save up for.
  • Homeowners association fees. This can also vary widely. You should always see if the house you are interested in is part of an HOA. Often, the fees are high and involve rules you may not like.
  • Home furnishings. Furnishing your home can be done cheaply, but I know some who buy huge homes and can’t afford to put anything in them, such as a table, a bed, and so on. Why own a $500,000 house if you don’t have any furniture?

Always remember to add up the total cost when deciding to buy a house!

Estimate how long you will live in the area.

This is one of the home buying tips you might not think of because you are so anxious to be moving. How could you possibly think about moving again already?! 

One of the best tips before buying a house is to think about how long you will live there.

Here’s why this is important to think about – it usually takes around five years to recoup the costs you paid to purchase a house. If you only live in a house for one or two years, then you may lose money on closing costs, due to the volatility of the real estate market, and more. Plus, it usually takes some time and legwork to buy a house, so you may not want to do it again so soon.

This is why you’ll want to think about how long you’ll be living in the area before you purchase your home.

You’ll want to make sure that the house will be suitable for you for at least five years, so you’ll want to think about things such as:

  • Are you happy with the area?
  • How are the schools?
  • Is the house big enough if you plan on starting a family?
  • Do you plan on working in the area for at least 5 years?

And so on. 

You really need to think about your future when deciding to buy a house.

 

Don’t feel rushed.

“How long should you give yourself to buy a house?”

This is one of the home buying tips that is hard during a seller’s market, which is what’s happening in many areas right now. Knowing that homes are selling very quickly, you may feel rushed to find a house and put an offer in. 

It’s also tempting to jump on a house the minute you find something you like, but if the purchase can wait 24 hours, then you may want to delay it. This will allow you more time to think about the purchase, go over your budget again, let any butterflies you have about the home purchase go away, and so on.

You will be able to make a much more rational decision if you think about your decision for at least 24 hours.

Plus, for all you know, you may even realize that you don’t want the house at all!

Do you really need or want that home?

“How do you make sure you get the house you want?”

Finally, the last of my home buying tips is to think about whether or not you actually need the house you are about to buy. It sounds easy enough, but many people do not even think about asking this question. When in fact, it is one of the most important questions to ask when buying a house (or any large purchase for that matter).

Really dig deep and ask yourself this simple question. Sure, you might think you want the house, but have you also been able to spend time thinking about the rest of my tips? 

Do you know the full cost of the house? Are you okay spending that much? Does the house have everything you need? 

Purchasing a home is a huge investment, and it deserves a lot of time and thought for you to make the best decision.

Have you bought a home recently? What other home buying tips should people think about?

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Source: makingsenseofcents.com

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As rent prices continue to soar all over the country, you may be finding yourself entering your first real estate search.

You’re not alone. According to the National Association of Realtors, millennials are ending their leases and buying homes in large numbers. Those in their late 20’s to early 30’s now make up the fastest-growing segment of buyers today. But how to even shop for a home these days?

First-time buyers might remember being dragged to Sunday open houses with their looky-loo parents, but those days are gone. Everything is online, and many real estate apps have sprung up to help buyers find their dream homes.

The 7 Best Home Buying Apps

  • Zillow: Best for overall use
  • Trulia: Best for community insight
  • Homesnap: Best for convenience
  • Redfin: Best for multilevel support
  • Rocket Homes: Best for one-stop shop
  • Realtor.com: Best for reliability
  • Homes.com: Best for quicking listing updates

Best Home Buying Apps at a Glance

App Best For Details Key Feature
Zillow Overall usability Virtual tours Push notifications SEE DETAILS
Realtor.com Reliability 3D tours Detailed descriptions SEE DETAILS
Trulia Community insight 34 map overlays 30M neighborhood reviews SEE DETAILS
Rocket Homes One-stop shop Agents/lenders links Area trend reports SEE DETAILS
Homesnap Convenience High-definition photos Optimized for mobile SEE DETAILS
Redfin Multilevel support User-friendly interface Calculates mortgage/fees SEE DETAILS
Homes.com Quick listing updates Home showings via Zoom Mortgage calculator SEE DETAILS

Zillow


Pro

  • Between for-sale-by-owner and official properties, it provides users access to over 135 million property listings.


Con

  • The “Zestimate” algorithm uses tax records to produce home value estimates, which sometimes are inaccurate.

The Zillow house-hunting app app is the most downloaded real estate app on the Apple store and Google Play — and for good reason. Its database constantly updates and has 36 million users monthly. You can set up push notifications for new real estate listings that meet your search criteria so you’ll never miss out on your potential dream home.

The app allows you to filter real estate listings by price, ZIP code, square footage, must-have features and more. You can even coordinate your search with a partner or roommate by tagging home features and sharing your favorites.

Zillow provides 3-D tours and a scheduling feature to set up an in-person tour. One of its best features is self tours of Zillow-owned homes, a feature available in some markets that allows house hunters to stop by the property at their convenience and simply unlock the house with the app.

Newly added to the Zillow app is a “natural-language search” tool, which responds to user questions in direct fashion, rather than requiring users to type multiple search questions to get to where they want to go.

Realtor.com


Pro

  • It’s the official search portal for the National Association of Realtors, meaning its updates are the most accurate.


Con

  • ​​Clicking on “contact agent” will not go to the listing agent, but instead to a local real estate agent who has paid for this lead service.

Realtor.com is one of the best home buying apps out there for on-market listings. Being the official search portal for the National Association of Realtors means you can trust the home listings that pop up in your search. The data is directly mined from the MLS (multiple listing service) and refreshes every 15 minutes.

The search features include a wide variety of filters and provides the most detailed real estate listing descriptions, which include things like crime rates, school ratings, property tax and history of home value estimates — even things like the neighborhood noise levels or whether a home is in a FEMA flood zone.

Because the app updates so often, setting up push notifications means you’ll quickly know when a new property hits the local market. You’ll also have the power of the “Sign Snap” tool in your pocket the next time you drive by a “for sale” sign. All you have to do is take a photo and Realtor.com pulls all of the home’s details instantly.

Trulia


Pro

  • Shows names and contact information for listing agents, so users know who they would be working with for each listing.


Con

  • You’re prompted to call or email the listing agent on any property you view, which can get in the way of casual browsing.

Acquired by Zillow in 2015, Trulia has access to most of Zillow’s database of over 135 million active listings and has become one of the best real estate apps. What sets it apart is the focus on community insight provided by those who are located in the area you are searching. You’ll not only get details on the property, but information on what it’s like to live in that specific neighborhood.

You’ll be alerted about price reductions and upcoming open houses, and the app will recommend new listings. Insights sourced straight from locals and 34 neighborhood map overlays offer details on commute times, nearby businesses, crime rates, nearby schools, and more.

Two other features added in 2018 distinguishes the Trulia app from others. “What locals say” and “local legal protections,” combine local feedback and public data to provide information about what a neighborhood is like, from level of dog-friendliness, day-in-the-life details, and even how folks decorate for the holidays.

You’ll also be able to see whether there is legislation in the area to protect against discrimination for gender identity or sexual orientation in employment, housing or public accommodations.

Rocket Homes


Pro

  • Lets you access your TransUnion credit report, which is updated every week.


Con

  • ​​Does not provide a home value estimate.

Similar to Trulia, Rocket Homes puts an emphasis on getting to know your soon-to-be neighborhood, but from a market statistics perspective.

This real estate knowledge will come in handy when searching for a home. You can compare properties in the area, seeing how long they’ve been on the market and what they sold for. If you’re not planning on living in your first home forever, this will help give you an idea of what kind of return on investment you can expect from your purchase in the future.

Rocket Homes is a product of Quicken Loans, giving you the opportunity to shop for homes from new and updated listings and have access to lending services all in one place.

This real estate app also helps you stay on track when it comes to some of the more boring parts of purchasing a home, like tracking your credit score. Rocket Homes gives you access to a free TransUnion credit report that is updated frequently, so you know exactly where you stand before starting the mortgage application process.

Homesnap


Pro

  • Get extensive details on a home just by snapping a photo of it.


Con

  • Lack of coverage in some areas; Homesnap must partner with individual multiple listing services.

The Homesnap real estate app is perfect for the on-the-go house hunter. You can simply snap a photo of a home and get all of the data available. This feature means you have real-time connection to your local multiple listing service from the road.

If you choose to search from the comfort of your home instead, the Homesnap app allows you to search for open houses by date, and even provides live-broadcast, virtual showings if you want to avoid mingling with other buyers in person.

You can collaborate with your real estate agent through a built-in private messaging function that automatically saves your listings for quick reference. Like most real estate apps, you have a ton of customizable filters for efficient searching, and will be provided with up to date information about the home and neighborhood like commute times, satellite photos and more.

Redfin


Pro

  • Updates every five minutes so you never miss a new listing.


Con

  • ​​If you don’t live in one of the 90 U.S. and Canada markets where Redfin has agents, you won’t be able to connect with one.

Redfin’s out-of-the-box-business model combines the convenience of a high-performance app and the expertise you can only get by working with a real estate agent directly. Because Redfin is also a brokerage firm, you’ll have access to their top-quality real estate agents.

Working with a real estate agent gives you more in-depth market insights so you can make smart home buying decisions. And through the “Hot Homes” feature you’ll know which homes are more likely to sell fast so you don’t miss your chance of putting in an offer while house hunting.

Redfin also recently updated its data on climate risk, school ratings and neighborhood amenities.

Homes.com


Pro

  • Most of 2020 was spent updating the speed and user-friendliness of the app.


Con

  • ​​Limited information on neighborhood and demographic data.

The Homes.com app is partnered with the MLS to bring you quality leads on your home buying search. The app offers a plethora of filter criteria like the other apps, such as square footage, ZIP code, number of bedrooms and bathrooms, but has an emphasis on lifestyle. Not only will you find the best house, but in the neighborhood that’s right for you.

The exclamation icon makes it easy to spot new real estate listings when scrolling through your search results. You also have the option to “favorite” or “block” certain properties in your feed so you can revisit the ones you love and eliminate the ones you don’t.

The mortgage calculator on Homes.com includes specific financing options like FHA (Federal Housing Administration) loans and special rates for active military members or retired veterans.

Frequently Asked Questions (FAQs) About Home Buying Apps

There’s a lot of home buying apps to pick from when you are seriously or even casually looking for a home. We’ve rounded up answers to some of the most common questions about home buying apps.

Which App is Best for Buying a House?

The best app for buying a house is the one that fits your needs. But Zillow is the most popular because it does a lot of things right, including allowing users to filter information by price, ZIP code, square footage, must-have features and more. Zillow also lists for-sale-by-owner homes. Zillow is the most downloaded real estate app on the Apple store and Google Play. It gets a 4.7 rating out of 5 from 475K reviews on Google Play. In the Apple App store, more than 6 million reviews get Zillow a 4.8 rating.

What are Home Buying Apps?

Home buying apps are mobile tools accessible on various digital devices that let users see listings to buy, sell or rent a property. Different apps have unique features but all of them include multiple photos of properties, prices, property tax and loan information and the ability to connect with real estate professionals.

Home buying apps provide many benefits to users because of their national coverage and even global offerings. Users can see maps and learn about neighborhoods, too. Best of all, they are free.

How Accurate are Home Buying Apps?

Because home buying apps take information from various sources, there will always be a margin of error in valuations. Estimated values are made from information gathered from county and tax assessor records, multiple listing services and real estate companies. 

For properties on the market, the apps should have accurate asking prices or rental amounts. Where there is more variation is on property estimates, including for properties not on the market. You should consider these ballpark figures and not 100% accurate especially in a hot market when prices are jumping seemingly daily.. The apps are a good place to start but most people follow that information with a call to a real estate professional.

What is the Best House Hunting Site?

Zillow is the best overall site with its massive listing bank while Realtor.com is tops for reliable information. Trulia is excellent if you want more information about the community around a home. Homesnap is tops for photos and it is optimized well for mobile. If you want to connect with a Realtor, check out Redfin and if you want a direct line to a lending service, Rocket Homes may be the right pick for you.

Which App is Better: Zillow or Redfin?

Zillow edges out Redfin because of its massive reach. Redfin is not available in every market. However, Redfin is a brokerage which connects directly to the massive database of real estate listings commonly called MLS. Zillow does not do that. Zillow allows for sale by owner listings and Redfin does not.

What is the Most Popular Real Estate Website?

Zillow is the leading real estate website with more than 36 million unique visitors a month and about 135 million live listings. Trulia, which Zillow has owned since 2015, comes in second with 23 million unique visitors. Zillow was founded in Seattle in 2006 and claims to be the most accurate at price estimates, called ‘Zestimates” though there are lots of claims otherwise. 

The Bottom Line About Home-Buying Apps

As you can see, if you’re ready to break up with your landlord, calculate what down payment you can afford and start your journey to home ownership, you have plenty of house-hunting apps to take advantage of.

Along with all the other details involved in this adventure, it may take some trial and error to find the app that hones in on your specific house-hunting search criteria. But it’s worth spending the time if it helps you get everything you want in your first home.

Contributor Tiffany Beyer is a social media coordinator and marketer specializing based in St. Petersburg, Florida. She specializes in real estate and lifestyle issues stories. Freelancer Kent McDill contributed to this post. 

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Source: thepennyhoarder.com